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August 10, 2010, Alert No. 2,122.
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New York Files State LCD Price Fixing Complaint

8/6. The State of New York filed a civil complaint [44 pages in PDF] in the Supreme Court of the State of New York (a trial court) alleging a price fixing conspiracy by manufacturers of thin film transistor liquid crystal display (TFT-LCD) in violation of New York antitrust laws

The Department of Justice's (DOJ) Antitrust Division (AD) years ago began a series of criminal prosecutions under the federal Sherman Act for the same alleged price fixing conspiracy.

The complaint alleges violation of the state Donnelly Act, which is codified at N.Y. Gen. Bus. L. § 340 et seq. The state of New York seeks to recover damages, treble damages, fines, costs and fees on the grounds that New York state entities and its vendors paid prices fixed by conspiracy.

The complaint names as defendants AU Optronics Corporation, Chi Mei Corporation, CMO Japan Co., Ltd., LG Displays Co., Ltd., Samsung Electronics Co., Ltd., Sharp Corporation, Toshiba Corporation, as well as subsidiary and affiliated companies.

The complaint states that "Many of the cartel members, and their executives, have already pled guilty to federal criminal antitrust violations and paid over $890 million dollars in fines."

This complaint further alleges that cartel members sold LCDs to both New York State entities, and to the state's vendors, such as Dell and IBM. It states that "fire and police departments, and many other entities throughout the State of New York purchased hundreds of millions of dollars of TFT-LCD products with TFT-LCD panels, the high costs of which were born by New York State taxpayers. The State purchasers on whose behalf this action is brought -and the taxpayers whose dollars financed those purchases have suffered substantial damages stemming from Defendants' unlawful conspiracy."

On August 4, 2010, DOJ/AD announced in a release that Chen-Lung Kuo, a former director of sales of Chi Mei Optoelectronics Corporation, "has agreed to plead guilty and to serve jail time in the United States for participating in a global conspiracy to fix the price of thin-film transistor-liquid crystal display (TFT-LCD) panels". This is another in the series of LCD prosecutions under the Sherman Act by the DOJ/AD.

HP's Mark Hurd Resigns

8/6. Hewlett Packard (HP) announced in a release that its P/CEO, Mark Hurd, "has decided with the Board of Directors to resign his positions effective immediately". HP added that an HP investigation found that Hurd had committed "violations of HP's Standards of Business Conduct".

HP also announced that CFO Cathie Lesjak has been appointed "CEO on an interim basis", and that she "has taken herself out of consideration as the permanent CEO".

HP selected Hurd to lead the company in 2006 following public disclosure of illegal pretexting and surveillance activities. See, story titled "HP Admits Spying on its Directors via Pretexting to Obtain Confidential Home Phone Records" in TLJ Daily E-Mail Alert No. 1,443, September 6, 2006.

The House Commerce Committee's (HCC) Subcommittee on Oversight and Investigations held two days of hearings on that HP scandal on September 28 and 29, 2006. See, stories in TLJ Daily E-Mail Alert No. 1,462, October 5, 2006:
 • California Charges Patricia Dunn and Others With Four Felonies
 • Cingular Sues Pretexting Firm Involved in HP Scandal
 • Verizon Wireless Files John Doe Complaint Against HP's Pretexters
 • HP Discloses Terms of Ann Baskins' Resignation Agreement
 • Persons Involved in the HP Scandal
 • Bibliography for HP Scandal

See also, stories in TLJ Daily E-Mail Alert No. 1,463, October 6, 2006:
 • Summary of Existing Federal Laws Related to Pretexting
 • Federal Criminal Statutes Related to Pretexting
 • Civil and Administrative Actions by Federal Agencies Related to Pretexting
 • Federal Private Rights of Action Related to Pretexting
 • FCC License Revocation, Renewal and Transfer Proceedings

In the wake of the HP pretexting scandal, the Congress criminalized pretexting to obtain confidential phone records. That prohibition was enacted in HR 4709 (109th Congress), the "Telephone Records and Privacy Act of 2006". That act was signed into law on January 12, 2007. It is now Public Law No. 109-476.

Prior to Patricia Dunn's ouster in September of 2006, Carly Fiorina was Chairman of HP. Fiorina is now the Republican challenger to Sen. Barbara Boxer (D-CA) in the November 2010 California Senate election.

More People and Appointments

8/9. Former Sen. Ted Stevens (R-AK), a former Chairman of the Senate Commerce Committee (SCC), died in an airplane crash in the state of Alaska. See, statement by Sen. Mark Begich (D-AK) and statement by Federal Communications Commission (FCC) Commissioner Robert McDowell.

8/6. The Department of Commerce's (DOC) Bureau of Industry and Security (BIS) published a notice in the Federal Register stating that it seeks private sector members for the President's Export Council Subcommittee on Export Administration (PECSEA). This notice adds that the PECSEA seeks persons with expertise in semiconductors, commercial communication satellites, high performance computers, and telecommunications. Submissions are due within 30 days. See, Federal Register, August 6, 2010, Vol. 75, No. 15, at Page 47548.

8/5. The Senate confirmed James Clapper to be Director of National Intelligence. See, Congressional Record, August 5, 2010, at Page S6991.

8/5. The Senate confirmed James Wynn to be a Judge of the U.S. Court of Appeals for the 4th Circuit. He was previously a judge of the North Carolina Court of Appeals, an intermediate state appellate court. See, Congressional Record, August 5, 2010, at Page S6991. President Obama nominated him on November 4, 2009. See, White House news office release and release.

8/5. The Senate confirmed Michelle Childs to be a Judge of the U.S. District Court for the District of South Carolina. See, Congressional Record, August 5, 2010, at Page S6991. President Obama nominated her on December 22, 2009. See, White House news office release.

8/5. The Senate confirmed Richard Gergel to be a Judge of the U.S. District Court for the District of South Carolina. See, Congressional Record, August 5, 2010, at Page S6991. President Obama nominated him on December 22, 2009. See, White House news office release.

8/5. The Senate confirmed Leonard Stark to be a Judge of the U.S. District Court for the District of Delaware. See, Congressional Record, August 5, 2010, at Page S6991. President Obama nominated him on March 17, 2010. See, White House news office release and release. He was a magistrate judge of the USDC/DDel. Before that, he worked in the Delaware office of the law firm of Skadden Arps.

Representatives Introduce Bill to End PNTR Status for PRC

7/30. Rep. Brad Sherman (D-CA), Rep. Ileana Ros-Lehtinen (R-FL) and others introduced HR 6071 [LOC | WW], the "Emergency China Trade Act of 2010", a bill to end the normal trade relations status of the People's Republic of China (PRC).

This bill would provide that "normal trade relations treatment shall not apply to the products of the People's Republic of China, and normal trade relations treatment may not thereafter be extended to the products of that country".

It would also require the President to "take the necessary steps to negotiate a trade relationship with the People's Republic of China that will achieve and maintain balanced trade between the United States and the People's Republic of China within four years".

The bill defines "balanced trade" as "a balance of trade between the United States and the People's Republic of China that ensures the value of United States goods exported from the United States, on a balance of payment basis, is equal in value to goods imported from the People's Republic of China, on a balance of payment basis".

It was referred to the House Ways and Means Committee and the House Rules Committee.

EC Trade Commissioner Addresses Indigenous Innovation and IPR in the PRC

7/22. Karel De Gucht, the European Commissioner for Trade, gave a speech in Shanghai, People's Republic of China (PRC), in which he discussed open markets, the PRC's indigenous innovation policy, and protection of intellectual property rights.

Karel De GuchtDe Gucht (at left) stated that "The success of China would not have been possible without the open multilateral trading system, and the openness of China's main export markets, including that of the European Union. China has greatly benefited from the openness of others, so it is only logical to see trade and openness as a two-way street. Sustainable, long term growth both for the European Union and China is only possible in a world economy which grows itself and which advocates open markets."

He also stated that "we must ensure that our procurement markets are open and transparent. In particular, `indigenous innovation΄ policies must not be allowed to close off parts of the procurement market in key sectors such as information technology or green technologies. This has prompted serious questions from international businesses. Personally, I believe that any procurement policy that distorts competition may hinder rather than stimulate innovation."

Also, he said that "it is crucial for trade and investment that there is strong protection of intellectual property rights for all of our companies".

More Trade News

7/30. Rep. Mark Critz (D-PA), Rep. Linda Sanchez (D-CA), and Rep. John Boccieri (OH) introduced HR 6007 [LOC | WW], the "Trade Enforcement Priorities Act", a bill to revise Section 310 of the Trade Act of 1974, which is codified at 19 U.S.C. § 2420. This Section requires the Office of the U.S. Trade Representative (OUSTR) to write an annual report that identifies "priority foreign country practices, the elimination of which is likely to have the most significant potential to increase United States exports". It was referred to the House Ways and Means Committee.

7/27. Pascal Lamy, Director General of the World Trade Organization (WTO), gave a speech in which he addressed Doha Development Agenda (DDA) negotiations. He said that "what is clear from all these discussions is an overall desire to move the DDA negotiations to a balanced and ambitious conclusion as soon as possible, consistent with the mandate and based on progress already made. At the same time I believe it is healthy to note the reality that faces us -- namely that gaps remain on the right level of ambition and on the right balance in the contributions by Members." but, he added, "After some months of impasse in the negotiations, my own sense is that we are beginning to see signs of a new dynamic emerging". He also said that "As regards the consultations which I am holding on the two TRIPS implementation issues of GI extension and TRIPS-CBD in my capacity as DG and not as TNC Chair, it is my intention to continue to follow up with Members on how to best proceed and I will keep you informed."

In This Issue
This issue contains the following items:
 • New York Files State LCD Price Fixing Complaint
 • HP's Mark Hurd Resigns
 • More People and Appointments
 • Representatives Introduce Bill to End PNTR Status for PRC
 • EC Trade Commissioner Addresses Indigenous Innovation and IPR in the PRC
 • More Trade News
Washington Tech Calendar
New items are highlighted in red.
Wednesday, August 11

The Senate will not meet. It will next meet on September 13, 2010.

The House will not meet. It will next meet at 2:00 PM on September 14, 2010.

9:00 AM - 1:00 PM. The Commodities Futures Trading Commission's (CFTC) and Securities and Exchange Commission's (SEC) Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues will meet. See, notice in the Federal Register, July 29, 2010, Vol. 75, No. 145, at Page 44781. Location: CFTC, Three Lafayette Centre, 1155 21st St., NW.

10:00 AM - 4:00 PM. Day one of a two day meeting of the U.S.-China Economic and Security Review Commission to consider drafts of material for its 2010 Annual Report to the Congress. See, notice in the Federal Register, August 10, 2010, Vol. 75, No. 153, at Page 48412. Location: Room 233, Hall of States, 444 North Capitol St., NW.

2:00 - 4:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to discuss preparations for the 2011 ITU-R World Radiocommunication Conference Preparatory Meeting. See, notice in the Federal Register, June 21, 2010, Vol. 75, No. 118, at Page 35122. Location: 1200 Wilson Boulevard, Arlington, VA.

Deadline to reply comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry and Notice of Proposed Rulemaking (NOI and NPRM) [222 pages in PDF] regarding high cost universal service subsidies and broadband. The FCC adopted and released this item on April 21, 2010. It is FCC 10-58 in WC Docket No. 10-90, GN Docket No. 09-51, and WC Docket No. 05-337. See, notice in the Federal Register, May 13, 2010, Vol. 75, No. 92, at Pages 26906-26916.

Thursday, August 12

10:00 AM. The Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Materials Technical Advisory Committee will hold a partially closed meeting. See, notice in the Federal Register, July 28, 2010, Vol. 75, No. 144, at Pages 44227-44228. The BIS will teleconference this event. Location: DOC, Room 3884, 14th Street between Constitution & Pennsylvania Avenues, NW.

10:00 AM - 4:00 PM. Day two of a two day meeting of the U.S.-China Economic and Security Review Commission to consider drafts of material for its 2010 Annual Report to the Congress. See, notice in the Federal Register, August 10, 2010, Vol. 75, No. 153, at Page 48412. Location: Room 233, Hall of States, 444 North Capitol St., NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) [64 pages in PDF] that proposes to reclassify broadband internet access services as Title II services. The FCC adopted and released this NOI on June 17, 2010. It is FCC 10-114 in GN Docket No. 10-127. See, stories titled "FCC Adopts Broadband Reclassification NOI", "Reaction to FCC Reclassification NOI", and "Congress, the FCC, and Broadband Regulation " in TLJ Daily E-Mail Alert No. 2,097, June 18, 2010. See also, story titled "FCC Employs Fast Tracking and Stacking in Reclassification Proceeding" in TLJ Daily E-Mail Alert No. 2,098, June 21, 2010. See also, notice in the Federal Register, June 24, 2010, Vol. 75, No. 121, at Pages 36071-36088.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) [30 pages in PDF] regarding Section 629 of the Telecommunications Act of 1996, which is codified at 47 U.S.C. § 549(a), and enabling electronics manufacturers to offer smart video devices at retail that can be used with the services of any MVPD and without the need to coordinate or negotiate with MVPDs. The FCC adopted and released this item on April 21, 2010. It is FCC 10-60 in MB Docket No. 10-91, CS Docket No. 97-80, and PP Docket No. 00-67. See, notice in the Federal Register, May 14, 2010, Vol. 75, No. 93, at Pages 27264-27271.

Deadline to submit to the Copyright Royalty Judges (CRJ) objections to the negotiated royalty rates for the satellite carrier statutory license of the Copyright Act for the license period 2010-2014. See, notice in the Federal Register, July 13, 2010, Vol. 75, No. 133, at Pages 39891-39892.

Friday, August 13

Deadline to submit comments to the Department of Homeland Security (DHS) regarding data collection forms for its Protected Repository for the Defense of Infrastructure Against Cyber Threats (PREDICT) initiative. See, notice in the Federal Register, June 14, 2010, Vol. 75, No. 113, at Pages 33629-33631.

Deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) regarding proposed changes to restriction practice in patent applications. See, notice in the Federal Register, June 14, 2010, Vol. 75, No. 113, at Pages 33584-33587.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to three public notices regarding FCC collection, use and dissemination of data. See, Media Bureau notice (DA 10-1195 in MB Docket No. 10-103), Wireline Competition Bureau (WCB) notice (DA 10-1189 in WC Docket No. 10-132), and Wireless Telecommunications Bureau (WTB) notice (DA 10-1223 in WT Docket No. 10-131). See also, FCC release.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-125 [35 pages in PDF] titled "Guide to Security for Full Virtualization Technologies".

Sunday, August 15

Deadline to submit comments to the Executive Office of the President's (EOP) Office of Science and Technology Policy's (OSTP) request for information regarding the National Nanotechnology Initiative (NNI). See, notice in the Federal Register, July 6, 2010, Vol. 75, No. 128, at Pages 38850-38853.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft NIST IR-7622 [86 pages in PDF] titled "Piloting Supply Chain Risk Management Practices for Federal Information Systems".

Monday, August 16

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking [99 pages in PDF] regarding access by telecommunications carriers and cable operators to utility poles. The FCC adopted and released this item on May 20, 2010. This item is FCC 10-84 in WC Docket No. 07-245 and GN Docket No. 09-51. See, notice in the Federal Register, July 15, 2010, Vol. 75, No. 135, at Pages 41337-41363. See also, story titled "FCC Adopts Pole Attachments Order and FNPRM" in TLJ Daily E-Mail Alert No. 2,087, May 26, 2010. See also, July 19, 2010, Public Notice (DA10-1323.)

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Public Notice [21 pages in PDF] requesting input and data on mobile wireless competition for the FCC's Fifteenth Annual Report on the State of Competition in Mobile Wireless. This item is DA 10-1234 in WT Docket No. 10-133.

Tuesday, August 17

1:30 - 4:00 PM. The Information Technology and Innovation Foundation (ITIF) will host a panel discussion titled "Allocating Educational Spectrum". The speakers will be Richard Bennett (ITIF), Jim Johnston, and Noelle Ellerson (Association of School Administrators). The ITIF will webcast this event. This event is free and open to the public. See, notice and registration page. Location: ITIF, Suite 610a, 1101 K St., NW.

6:00 - 9:15 PM. The DC Bar Association will host a panel discussion titled "Part 1: Software Patent Primer: Acquisition, Exploitation, Enforcement and Defense". The speakers will be Stephen Parker (Westerman, Hattori), Brian Rosenbloom (Figg Ernst), Martin Zoltick (Rothwell Figg). The price to attend ranges from $89 to $129. Reporters are barred from attending most DC Bar events. This event qualifies for CLE credits. See, notice. For more information, call 202-626-3488. Location: DC Bar Conference Center, 1101 K St., NW.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-130 [88 pages in PDF] titled "A Framework for Designing Cryptographic Key Management Systems".

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding amending its satellite television significantly viewed rules to implement Section 203 of the Satellite Television Extension and Localism Act of 2010 (STELA). The FCC adopted this NPRM on July 22, 2010, and released the text [27 pages in PDF] on July 23, 2010. It is FCC 10-130 in MB Docket No. 10-148. See, notice in the Federal Register, July 28, 2010, Vol. 75, No. 144, at Pages 44198-44209.

Wednesday, August 18

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) [25 pages in PDF] regarding its video relay service (VRS) rules. The FCC adopted this NOI on June 8, 2010, and released the text on June 28, 2010. This NOI is FCC 10-111 in CG Docket No. 10-51. See, notice in the Federal Register, July 19, 2010, Vol. 75, No. 137, at Pages 41863-41866.

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